Q2, 2006

This has been one of the more forgettable quarters in the company’s history. In fact, we do not recall such a difficult quarter since we went public in Q3, 2003.

We initiated a program for technology transfer from the US at the start of the quarter. Although the program was a success, the Work division subsequently suffered from a data loss incident which took a heavy toll on time & resources. The backlog of issues is still being dealt with and that has made what could’ve been a interesting & exciting venture into a dreary operation.

The repeated failure of existing IT infrastructure in the Home division necessitated heavy expenditure in purchase of new equipment. On the bright side, the decision to renew the lease on the existing premises has saved the company a considerable amount of money.

Several other factors have contributed to the gloomy results this quarter. Meanwhile, the parent company continues to raise the possibility of a merger with another like-minded party. In the current environment, we feel it would not be a wise strategy to pursue.

Considering the bad quarter, it is perhaps surprising that we remain upbeat and optimistic about our performance in the next quarter. As usual though, we do not provide future guidance for investors.

Oh boy! I didn’t think a disclaimer was needed but here it is: the ‘company’ here is me - not any real company & especially not my employer, Borland. I hope the post makes sense now :-)